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Paypal Earnings Increase with Convincing Growth in Venmo

Paypal Holdings exceeded Wall Street estimates on Thursday after it reported third-quarter earnings and revenue with a significant increase in payment volume for its mobile payments service, Venmo.

Having fared better than the 54% analysts’ forecasted, the California-based company is now on course to monetizing Venmo. Revenue in the third quarter also performed better than the $3.67 billion average projection by rising 14% to $3.68 billion, while earnings rose 26%.

Peer-to-peer payment app Venmo had its total payment volume rise by 78% in the third quarter, to about $17 billion. Venmo had hitherto been unable to prove its wherewithal as a money-making enterprise for its parent company, but investors will see the rise in payment volume as a sign of more good things to come.

With the renewed momentum, PayPal CEO Daniel Schulman hinted on a call with analysts Thursday that the company’s monetization efforts are yielding the right result.

“I’m especially pleased with the strong overall momentum surrounding Venmo. While it is still early, our monetization efforts appear to be reaching a tipping point.”

Debit Cards for Venmo

In June, PayPal rolled out debit cards for Venmo to smoothen the collection of transaction fees. Prior to the company’s report for last earnings in July, billionaire Dan Loeb’s Hedge Fund Third Point disclosed a stake in Venmo and expressed optimism about Venmo’s potential to churn $1 billion in annual sales within three years.

PayPal’s marketing strategy also incorporated liaising with retailers to accept Venmo transactions carried out on mobile phones of customers. A significant leap in this aspect was made after Uber Technologies in July agreed to include Venmo among its payment options.

During the week, PayPal increased the fee for quick fund transfer to bank accounts to a percent of the transaction amount from a flat 25 cents.

With many receiving the earnings report Thursday as a welcome sign, Mr. Schulman disclosed that there had been a 185% increase in the number of people using Venmo compared to the previous month.

PayPal is keen on wringing more profit from transaction fees by encouraging people to carry out purchases using their Venmo balance instead of a credit card linked to their accounts.

The total payment volume of PayPal fell marginally short of Refinitiv analysts’ expectations of $145 billion by reaching $143 billion during the same quarter. The amount nevertheless, represents a 25% increase. 40% of the payment volume was comprised of mobile payment growth while it constituted 45% growth in mobile payment volume for the third quarter. A 27% surge in total payment transactions amounted to 2.5 total for the quarter.

Accounts added in the third quarter of the year reached an unprecedented height hitting what the company called a “record” 9.1 million accounts, 15% higher than what was reported in the last quarter. The quarter closed with a total of 254 million active accounts.

Paypal Fourth Quarter Earnings

In line with forecasts given by analysts, fourth-quarter earnings guidance was raised by PayPal to a range of between 65 and 67 cents and the company also increased quarterly revenue guidance. Full-year earnings guidance was upped to a range of between $2.38 and $2.40 per share, and this was above the consensus expectations of analysts put at $2.34 per share.

Prequel to the report on earnings made known on Thursday; announcements were made about the company’s latest features and a more robust collaboration of its existing partnership with American Express which will now enable customers of the latter to make transfers via Venmo or PayPal directly from their Annex mobile app.

Also, American Express customers will be able to pay credit card bills with existing Venmo balances as well as being able to make use of Annex Membership Reward points for purchases made on PayPal. Meanwhile, American Express also reported earnings after the bell on Thursday.

Images from Shutterstock.

October 21, 2018
Dating App Bumble to Expand into India with Help from Local Actress

Dating is stressful enough. No matter how well you know a person through a chatting app, there’s plenty of room for disappointment. What if they aren’t as interesting in person? What if they have a facial tick or halitosis? Or, worse still, what if you get left staring at an empty place setting in a restaurant watching the minutes tick by?

If that’s dating in the western world imagine what it’s like dating’s a country like India, where there are over 100 rapes a day and Indian men think stalking is normal. It’s only natural that women there are nervous when it comes to romance–and why, according to actress and investor in the company, Priyanka Chopra:

“Indian women needed Bumble”

What Is Bumble?

Just in case you haven’t stumbled across Bumble, it’s the latest online dating app looking to branch into the Indian market–with women in its sights.

Featured image from Bumble

One of the app’s main features that should particularly appeal to women is that it requires them to make the move first. This gives them the option to speak with whom they wish without the fear of receiving a barrage of unwanted messages.

Chopra, a celebrity in India, will be advising the app’s team over the expansion.

Localizing for the Target Market

Bumble announced the news last Wednesday, just under a week after the app’s main rival Tinder launched a “My Move” feature in the Indian market, allowing women to select the option of always initiating the conversation first.

Despite the timing of the announcement, the female-friendly dating app has been planning its move to India for some time, and Chopra was part of a high-profile group of women who kickstarted Bumble Bizz, Bumble’s networking app, in October of last year.

Bumble CEO and Founder Wolfe Herd told CNN that the biggest challenge of entering the Indian market was:

“localizing the experience and attracting women”

This will be the main job for Chopra, as a household name in the country. The app will be localized in Hindi and “Hinglish,” and available on both Android and iOS. The company will also be rolling out additional safety features before entering the market, although these have yet to be revealed.

India Named the Most Dangerous Country to Be a Woman

Safety is an absolute priority for Indian women, living in a country with a global reputation for violence against women. In fact, in June of this year, India was ranked as the most dangerous country in the world for women, which sort of puts the halitosis thing into perspective.

Dating can be a literal suicide mission with the wrong person.

To protect their privacy, women will not be asked for their full details by the app (something incredibly refreshing to say, Facebook). They will not need to provide a first or last name, but just a photo and an initial. There are also several ways of reporting bad behavior to ensure that bad actors are kept out of the app. There is a photo verification service as well.

Ongoing Feud

Before starting Bumble, Wolfe Herd was one of Tinder’s first employees, leaving back in 2014 after suing for discrimination and (ironically) sexual harassment. While the case was settled outside of court, it’s hardly surprising that the rivalry continues between these two companies.

In fact, Tinder’s parent company Match is currently suing Bumble for theft of trade secrets, while Bumble is counter-suing Match for using the litigation as a revenge attempt after failing to acquire the popular app.

India will be a key market for Bumble thanks to its sheer size and fame for sexual harassment. India has some 390 million internet users, second only to China in numbers.

Whether they make like their name and ‘bumble’ their attempt into the South Asian market remains to be seen. Although throwing another lifeline to young females in a dangerous dating market can only be a good thing.

Featured image from Wikimedia.

October 21, 2018
Meet the Abu Dhabi Billionaire Who Owns a Museum of Cars

Hamad bin Hamdan Al Nahyan, popularly referred to as the Rainbow Sheikh, is the son of the late Emir of Abu Dhabi, the founder and first president of the United Arab Emirate (UAE). The Emirati businessman and Abu Dhabi billionaire is a descent of the Al Nahyan clan, one of the ruling families of the United Arab Emirates.

His nobility is a heritage which is shared by other members of the ruling clan. Hamad bagged his first degree in economics at the Emirates University before proceeding to obtain a masters degree at the University of Wales.

Rainbow Cars

His stupendous luxury includes a vast collection of some of the rarest automobiles. Profound among them are the seven Mercedes S-Classes which come in a variety of colors. He acquired these German machines in 1983 and sought the expertise of the “Styling Garage” firm to paint the cars one rainbow color each day of the week.

The German firm painted each car in the colors of the rainbow. Designed with matching leather interiors, the vehicles include gun racks inside the boot lit which accommodate three M16 rifles that match the color of the cars.

Image Source: Steemit

This was where the parallel between the seven colors of his cars and the rainbow was drawn, hence; the nickname Rainbow Sheikh. Though his clout as an Abu Dhabi billionaire reverberates with so much ado in the United Arab Emirate’s capital, Hamad has a fervor for extravagance everywhere he goes.

Museum of Cars

Unlike Jay Leno who grew up acquainting himself with broken tractors and lawnmowers, Hamad has been preoccupied with the acquisition of rare and puzzling vehicles. A look into Hamad’s world of appurtenances will reveal the possession of a number of vintage Mini Coopers which seem to be a replica of an 1885 Benz Patent Motorwagen–widely regarded as the first ever car–and the only SUV ever manufactured by Lamborghini.

Source: Visit Abu Dhabi

His impressive array which some might deem eccentric includes vehicles ranging from the mundane to the insane. With an overwhelming status as a noble in the oil-rich nation, it would be somewhat pedestrian for someone of his influence to keep such cars in a garage.

Thus, Hamad specially built a pyramid to serve as a gallery for his antiquated collection. Commissioned as the Rainbow Sheikh’s Emirates National Auto Museum, Abu Dhabi, he combines the modern and the conservative taste to carve a niche which the likes of Jay Leno and Ralph Lauren would drool at.

World’s Largest Jeep

Hamad has a megalomaniac preference for dimensions that seem to defy the extreme definition for oddity. He built the world’s largest jeep; a prototype of the Dodge Power Wagon which is 64 times larger than the original.

The truck which is today the largest in existence has an apartment within. The Emirates National Auto Museum in Abu Dhabi is the only preserve where the rarity of a hybrid dwells.

He has a soft touch for Mercedes and feels well at home with other fans of the brand online. His museum also houses the largest motorized model of a Willys World War II jeep. The jeep gained global acclaim in 2012 when it was placed in the Guinness Book of World Records and the Abu Dhabi billionaire exploited the avenue to espouse the technological wherewithal of the UAE.

Social Media

The Sheikh never shies away from using his Instagram account as a platform to express his unbridled enthusiasm for ‘aesthetics around the wheels.’ His posts are almost entirely devoted to vehicles and anything related to transportation.

Followers will surely revel in the seemingly endless display of automobile luxury which includes the rarest and the most outlandish available. It features antiquities such as a massive white Ford truck in dunes and a 1959 Pontiac Bonneville. Other marvels include some of the cutest boats that you can imagine on waters.

Instagram

But some may think Hamad only comes to the spotlight because of his penchant for amassing a reservoir of automobiles. Beyond the attention stirred by his hobbies, his fortune according to the Daily Mail is almost as immense as that of the Saudi’s king. Hamad is one of the world’s nouveau riche with a net worth estimated at $20 billion and an abode that could be described as a castle.

He is twice as wealthy as mining magnate Gina Rinehart and even wealthier than the combined gross domestic product of several countries in Africa and Asia. Amassing about 400 different types of automobile barely drills a hole in Hamad’s pocket.

Abu Dhabi—the region where Hamad’s fortune sprouts from—has an immense oil deposit that constitutes 95% of the oil reserves in the United Arab Emirates. His family, regarded as one of the ruling elites in the UAE, controls Abu Dhabi’s oil deposits.

Branded Island

Hamad’s oddball adventures are not only restricted to road and track. He garnered global attention in 2011 when he reportedly recruited workers to carve his first name along a winding network of canals in a mostly-uninhabited island near Abu Dhabi. Named Al Futaisi, this private Island belonging to Hamad witnessed a dredging project creating series of canals snaking through the desert.

The ambitious engravement formed waterways in the sand. The fortune spent on such audacious project which spanned about a mile wide and a third of a mile across, left many lost for words when the Atlantic confirmed that the large letters of his names were visible even from space.

Although the images were wiped away probably for something grander and more in sync with the emirate’s development plan for 2030, his eccentric investment drew much publicity to the touch of wealth residing in the oil-rich region.

The Abu Dhabi billionaire flings his fortunes across America, Europe, and Australia as well. In 2017, the Sheikh spurned exploration attempts of an oil and gas company on his pastoral property in Australia.

While Hamad does not like to appeal to the world as a politician, he holds critical positions in the top echelons of administration in his native land where he serves as the chairman of Abu Dhabi Crown Prince’s Court and a member of the Executive Council of Abu Dhabi.

Featured image from commons.wikimedia.org.

October 21, 2018
The Price of Gold Keeps on Rising – Who’s Buying?

The price of gold, under higher demand, has surged over the last few days. The gold market is seeing gains over 7% in the last week, and now the third week of gains overall. So, who’s buying the precious metal and why?

Gold bullion hit $1,233.26, the highest price per ounce for two and a half months on Monday, October 20, 2018, and finished this week at $1226.49.

Gold is still an incredibly popular investment despite investor interest growing in recent years in technology stocks and cryptocurrencies. It’s a relatively stable investment and a go-to in times of uncertainty and fear of recession.

Macquarie commodity strategist Matthew Turner said on Friday to CNBC:

“Sensitivity to equity markets is helping gold at the moment.”

U.S Federal Reserve interest rate hikes are adding to fears of recession and global uncertainty. Turner added:

“We are entering a new paradigm, where any further rate hike could be a sign that the economy is overheating a bit, which should be more positive for gold and problematic for equities.”

Global stock markets have seen some big hits in recent weeks. The US markets dipped under a sell-off of technology shares and China’s massive markets are continuing to struggle under economic woes. Both the US and China are likely to suffer over this year’s trade war. Some of the money moving out of stocks and shares is almost certainly going to gold right now.

Kitco Metals senior analyst Jim Wyckoff told Reuters that the volatility in the stock markets recently has been favoring gold:

“The technical posture of gold in near term basis has improved remarkably in the past two weeks.”

A slightly weaker dollar is also aiding the price of gold. The largest gold-backed exchange traded fund (ETF), from SPDR Gold Trust, has also seen a gain of 2.5% in the past two weeks.

Russia and China are Selling US Treasuries and Buying Gold

It’s not just individual and corporate investors that are buying gold right now. Russia was in 2011 the largest holder of US debt securities in the form of US Treasury bonds with a $180 billion investment. Russia has been selling these bonds and as of August owned just $14 billion, dropping to the 54^th largest holder of US Treasuries.

A Russian broker at Otkritie bank, Timur Nigmatullin said:

“A further sale of US Treasury bonds by Russia will most likely be compensated by buying gold and opening short-term deposits at banks.”

Indeed, the percentage of gold in Russia’s foreign reserves has grown to 18%.

China, Japan, India, and Turkey have also been selling their US bonds, due in part to interest rate hikes. China and Japan are currently the largest investors in US debt.

China’s official gold reserves have grown from 1,054 tonnes in 2015 to 1,843 tonnes by the second quarter of 2018.

Matthew Mark, director of US Asset Owners at The World Gold Council confirmed:

“China is now one of the top 10 largest central banks holding gold. It has shown to be a very resilient purchaser of gold.”

The demand for gold amongst Chinese consumers has also risen 5% from last year, notable as the Chinese stock market hits lows. Mark said:

“China is one of the most exciting markets for gold because of the strengthening of its gold market infrastructure.”

Hungary Increases Gold Reserves by 1,000%

Citing economic “safety concerns,” Hungary has suddenly increased its gold reserves by 1,000%, buying gold bullion for the first time since 1986. Hungary is also following the trend of other European central banks including Poland, Austria, Netherlands, and Germany by repatriating gold reserves back to its own country, instead of placing it with the Bank of England or the U.S Federal Reserve.

Many central banks began buying more gold in 2010, last year activity in the sector grew by 36%. Though many countries keep high balances of US Bonds and the dollar to facilitate trade, conducted mostly in USD, the trend for buying gold looks set to continue.

Commerzbank analysts predicted on Friday:

“Today’s attempt by gold to lastingly exceed the 100-day moving average looks promising. If it succeeds, technical follow-up buying should push the gold price further up.”

Images from Shutterstock.

October 21, 2018
Trump Will Pull US Out of Nuclear Treaty with Russia

Just in case you’d started breathing easier over the world’s nuclear fate since the US and North Korea buried the hatchet, there’s another, potentially far more potent, player to contend with–Russia. Trump yesterday announced that he will be pulling the US out of a longstanding Cold War nuclear treaty with the superpower. Great.

The Terms of the Cold War Nuclear Treaty

The treaty in place bans both countries from using land-based missiles that can place either country within range of the other. On Saturday, Trump revealed to reporters that:

“We’re going to terminate the agreement and we’re going to pull out.”

The treaty goes back to 1987 and covers missiles with a range of up to 3,420 miles, otherwise known as intermediate-range. Trump said the withdrawal from the Cold War nuclear treaty was a move forward for the US, meaning they could develop more weapons. He added that Russia had been violating the terms of the treaty for years anyway. While he gave no timeline for the withdrawal, he said:

“We’re not going to let them violate a nuclear agreement and go out and do weapons and we’re not allowed to.”

Star Wars the Sequal?

Sounding ever-so-slightly like a petulant child who’s had his favorite toy snatched away, the president did concede that the US would “consider” capping its nuclear weapon development efforts. But this would only happen if a new arrangement could be agreed upon with both Russia and China, who is not a part of the existing deal. He said:

“If Russia is doing it and if China is doing it, and we’re adhering to the agreement, that’s unacceptable.”

In what seems reminiscent of a playground fight, Moscow has staunchly denied breaking the terms of the Cold War nuclear treaty. In turn, they accuse the US of breaking the terms.

Trump talking to reporters on Saturday / Reuters

Trump’s national security adviser on Russia will meet with senior officials in Moscow on Monday to discuss coming to new terms for the treaty, as well as several other pending issues affecting the two nations.

The two powerhouse countries also look set to discuss the terms of the New Start Treaty of 2010 (set for renewal in 2021) that caps the number of nuclear warheads that each country can own. This will either involve a complete renegotiation or extension.

Backlash from Russia

A Russian senator Alexei Pushkov claimed that Trump’s statement would lead to a:

“returning the world to the Cold War… Such an exit would be the second most powerful blow inflicted on the world’s entire system of strategic stability.”

Pushkov considered the first major blow to have been the US’ withdrawal from the 2001 anti-ballistic missile treaty, a process initiated by the US. Trump’s comments on Saturday sparked further criticism from the Kremlin, with a prominent member of the Defense and Security Committee of the Russian upper house of parliament saying that the US was:

“trying to drag Russia into an arms race… Not only Russia but the whole world has been given a new and dangerous challenge. They want, like the Soviet Union at one time, to be drawn into an arms race. It will not work. I have no doubt that our country will be able to guarantee its security under any circumstances.”

International Response

US lapdog, Great Britain, was quick to support president Trump, with the UK defense secretary Gavin Williamson blaming Russia for the breakdown of the treaty, signed by presidents Reagan and Gorbachev.

He insisted that the UK stood “resolute” behind their “close and long-term ally” the US. He also said that the Kremlin was making a “mockery” out of the agreement.

This will come as a surprise to exactly no one, particularly with the bad blood surrounding the UK and Russia at the moment after the poisoning of the Russian spy Novichok on UK soil.

Featured image from Shutterstock.

October 21, 2018
Do You Have to Be a Billionaire to Own a Private Plane?
Being a billionaire will help if you plan to operate a private plane as it certainly doesn’t come cheap. A list showing some of the most famous private plane owners does indeed include a high proportion of billionaires.

In the list are President Donald Trump, Prince Al-Waleed bin Talal, and actor Jackie Chan. Other famous owners include Bill Gates, Tom Cruise, Steven Spielberg, Roman Abramovich, the Sultan of Brunei, and Tiger Woods.

Of the 15 high profile owners, there are nine billionaires and six with a net worth in the range $150 to $740 million. Saudi royal Prince Al-Waleed bin Talal heads up the list as the owner of the most expensive plane, which is valued at $500 million. But actor Jackie Chan picked up his private “wings” for just $20 to $30 million.

Do You Want Your Own Private Plane?

Musician Jimmy Buffett owns an ex-military Grumman HU-16 Albatross. The flying boat was purchased for an undisclosed sum. When you compare Buffett’s Albatross to the Bombardier BD-700 ($45 million) of Bill Gates, it’s clear the owners have different priorities when choosing a private plane.

Net worth probably comes into play with Buffett at $550 million (well short of Gates at $90 billion). But it will also depend on other factors like whether the owner intends to fly the plane themselves, how far they expect to travel, and how often and how big their entourage is going to be.

Running costs can be astronomical for older, less fuel-efficient planes, but they can be picked up for not much more than a Ford Mustang. A Piper J-3 Cub, from 1946, is available for less than $30,000.

https://www.trade-a-plane.com/

With an entourage the size of Beyoncé, the Piper is not going to work, but if you’re a bit of a Howard Hughes, it might be the one for you. For most celebrities, the budget is upwards of $20 million with running costs on top.

Tom Cruise and John Travolta are stars with a pilot’s license, and other famous pilots include Angelina Jolie, Harrison Ford, and Gisele Bündchen.

Start Your Own Airline

Some famous people are happy to use scheduled flights for their business trips and meetings. Conversely, other entrepreneurs have taken it to the extreme by setting up their own airline. Sir. Richard Branson set up his airline as he wasn’t impressed by the service offered by other ones. He is on record as saying:

“I started our airline, Virgin Atlantic, as a response to the poor service that I was subjected to on other airlines.”

He does, however, own a private plane which he justifies as it provides flexibility and saves him time. Over the years many other entrepreneurs have tried and failed, to run successful airlines. To emphasize just how difficult it is Boeing’s own website includes this stark warning:

“Starting an airline is tough. Running a profitable airline is even tougher. From startup airlines to established industry leaders, the process involves constant learning and adaptation.

Few businesses have as many variables and challenges as airlines. They are capital-intensive. Competition is fierce. Airlines are fossil fuel dependent and often at the mercy of fuel price volatility. Operations are labor intensive and subject to government control and political influence. And a lot depends on the weather.”

Airline Failures

In fairness, Boeing’s website does provide a very informative guide for anyone wanting to take the risk. This includes leasing planes rather than outright purchase and considering second-hand rather than new.

Despite the comprehensive guide from one of the world’s largest aircraft manufacturers, many airlines fail. Wikipedia has a huge dossier on defunct airlines of the United States. Almost 550 US airlines have fallen by the wayside according to the list. Wikipedia does point out:

“some of these airlines have changed identities and/or FAA certificates and are still operating under a different name”

Budget airlines in Europe, like Ryanair and EasyJet, are significantly cheaper to operate than their US counterparts. International Airport Review quotes US budget airlines as being about 10 to 20% more expensive. They suggest European airlines are cheaper for the following reasons:
- Essential services only – Ryanair doesn’t offer an in-flight TV service
- Bought wisely – modern fleets bought following 9/11
- Streamlined services – one genre of aircraft per business
- In-flight savings – fixed seats are cheaper to buy and maintain
- Staff savings – employees are often just starting in the industry
- Buying power – charge for everything onboard, even lottery tickets
- Cheaper airports – use provincial airports
- Aircraft usage – very quick turn rounds and busy schedules
Even in Europe running an airline is a high-risk venture. Another company was added to the list this week with the BBC reporting that Cobalt has ceased trading. Barely two years since Cobalt began operations from their base in Cyprus, they halted all flights without notice.

Source / www.express.co.uk

Taking a Punt on Airline Stocks

Rather than buying your own private plane or adopting the high-risk strategy of setting up an airline it might be worth taking a punt on airline stocks. We’ve just started the US airline interim reporting season with United Airlines (UCL) first out of the blocks.

Third quarter figures were released this week with some analysts upgrading them from hold to buy. UCL price is up from just below $60 a year ago to around $88 today.

American Airlines (AAL) has not fared quite so well with the price down from $52 to $32. Analysts are eagerly awaiting the earnings figures for American Airlines which are due out October 25. Expectations are high that they will follow the trend set by United, making AAL a strong buy.

And if a private plane is not on your bucket list then maybe you have your eye set on a superyacht instead.

Featured image from Shutterstock.
October 21, 2018
Are You Ready for More Chinese Social Media Apps?

Are you ready for more Chinese social media apps? Beijing-based startup ByteDance thinks you are. The Chinese company is decided to conquer Western social media fans, after reaching 500 million monthly active users worldwide with one single app.

The TikTok app (in Chinese, Douyin) is a mobile-only social video platform that allows users to watch music videos, as well as record their own 15-second videos, edit them, and add special effects.

The app everyone’s eye this spring, when it became the most downloaded app in the Apple store for Q1 of 2018, with 45 million downloads (more than WhatsApp, Facebook, or Instagram).

China’s ByteDance is looking to increase the number of users for all its apps across Asia, South America, North America, and Europe.

TikTok Is Doing Everything to Win over New Subscribers

Musical.ly was the first Chinese app that made it in the US, racking up over 20 million users in North America and over 100 million users worldwide. Thanks to its lip syncing feature and its funny faces, it was very popular among internet users.

ByteDance bought Musical.ly for $800 million and merged it with TikTok so that anyone who had an account on Musical.ly was automatically on TikTok as well. This strategic move increased the number of TikTok users significantly.

Now TikTok seems to be ready to take over the US market at all costs. Last week, they took advantage of YouTube’s crash to lure more subscribers:

YouTube may be down, but TikTok is alive, awake and never better #StayWoke #YouTubeDown #MakeSocialFunAgain pic.twitter.com/sjEw8Si4Bj

— TikTok (@tiktok_us) October 17, 2018

ByteDance Is Going Global with AI Technology

ByteDance uses artificial intelligence and machine learning to gain insights on consumers’ preferences and develop popular products for both Chinese and foreign audiences.

The company started its international expansion in 2015, with TopBuzz, a separate English version of the Chinese Toutiao–an app that uses AI to provide its users with customized news feeds, and has 700 million users consuming content for an average of 76 minutes per day.

ByteDance also bought the video startup Flipagram, now promoted under the name Vigo Video.

Last year, investors valued ByteDance at $20 billion. This year, the Chinese tech giant is looking to hit the jackpot as it raises money at a valuation of up to $75 billion. This would make it one of the world’s most valuable tech unicorns, next to Uber (worth $76 billion).

ByteDance presently owns eight products that are available in over 40 countries including China, South America, North America, Europe, and Southeast Asia.

Featured image from Shutterstock.

October 20, 2018
Walmart Cuts Profit Outlook After Flipkart Acquisition

Having just added India’s e-commerce retailer Flipkart to its pool of acquisitions, Walmart’s strategy is being shaped to reflect more growth than profit. The world’s largest retailer pruned down its profit forecast on Tuesday to reflect its $16 billion purchase of India’s biggest online store.

While hosting its annual investor meeting on Tuesday, the company made known how it had lowered its profit guidance for the current fiscal year within the range of $2.65 to $2.80 per share.

This is in contrast to its prior outlook which was as high as $3.05 per share. The impact of Flipkart (which is its largest acquisition ever in Walmart’s history) would take its toll on profit by 25% a share, Walmart noted.

The Bentonville-based multinational retail corporation estimates profits as high as $4.80 a share for next year which notwithstanding, is lesser than its prior forecast of up to $5.05 a share.

Ranked among the 30 largest publicly owned enterprises trading on the New York Stock Exchange, its stock rose by 3% during after-hours Wednesday as the bump suggests that the company’s investors are borrowing a leaf from Amazon investors through their readiness to make do with a profit slump in exchange for growth in market share.

Locally Sourced Products

Going by the potential hike in many consumer goods due to tariffs levied by the Federal Government, Walmart chief financial officer deemed it fit to address these concerns stating Walmart’s intention to reduce the impact of any potential hike in price to its consumers.

He further noted that two-thirds of products sold at Walmart stores were sourced within the US.

Walmart US constitutes three-fifths of the multinational sales unit and thus, the biggest unit that investors are focused on. Online sales are estimated to reach the 35% mark for the next fiscal year. The US division’s comparable sales are projected to rise by 3% for the next fiscal year.

The upward projection comes on the heels of the division’s release in August which recorded an unprecedented performance in online sales put at 40%. Ranked as the best quarterly comparable sales in over a decade, its sizable store fleet fared excellently well among other online rivals in August.

The company plans to raise its competitive edge against Amazon by focusing more on online investments as it said it plans to open less than 10 Walmart stores next year.

Coupled with online spending, Walmart revealed that about $11 billion of capital spending would be earmarked for store remodels, technology and customer initiatives.

Pickup locations are expected to rise to 3,100, catering to the grocery department— the company’s most significant product segment, which has been the vehicle of its online and store traffic.

Anticipated pickup locations as of August were put at 1,800. The delivery of groceries is expected to reach 1,600 locations; a right step in its ambition to reach 40% of the US consumer population by the end of this year.

Walmart US’s online strategy is quite multi-faceted, and apart from its emphasis on grocery, the company hopes to leverage consumers preferring the convenience and one-stop shopping with its e-commerce initiatives.

Online Acquisition

These initiatives have involved a shopping spree including this month’s purchase of online lingerie retailer Bare necessities and plus-size fashion retailer Eloquii.

Walmart has also opened an e-books store and its recently revamped Jet.com is the largest US acquisition of 2016, squarely locating it as a site to target affluent urban millennials. As part of the facelift, fashionable men’s clothing brand Bonobos which was acquired by Walmart is now being sold on Jet.com, even though it is still absent on Walmart.com.

From an international perspective, Flipkart:

“transforms Walmart’s position in a country with more than 1.3 billion people, strong GDP growth, a growing middle class and significant runway for smartphone, internet, and e-commerce penetration.”

With its sights now focused on exploiting last-mile delivery as a big differentiator for global e-commerce, Walmart in September last year, finalized agreement to purchase Cornershop, an online marketplace for crowd-sourced, on-demand delivery in Mexico and Chile.

Meanwhile, the sales index according to research firm RedSeer Consulting saw Flipkart getting the better of the market with a 51% share while Amazon had to settle for 32% of the festive October sale which began on October 9 and ended October 14.

Flipkart’s performance was put down to the high demand for smartphones and fashion verticals during the festive period.

Images from Shutterstock.

October 20, 2018
Fortnite Provides Plenty of Challenges for the Weekend Ahead

Tired of making money this week? Heading to the couch to play Fortnite? To keep its millions of players occupied, Epic Games has been busy creating new Fortnite Challenges and making a few upgrades.

Fortnite Knock and Run

It’s nearly Halloween and Epic Games is building up. As well as Halloween skins, Fortnite has created Halloween Challenges. For week four of this season, six players will have to trick-or-treat to level up their battle passes by visiting houses and ringing doorbells.

The doorbell challenge is one of three free challenges for week four. Players have to be quick, landing in popular landing zones and ringing the doorbell on houses with opponents inside!

Image Source: VGR

Shooting Galleries

A second of week four’s free challenges, Battle pass owners get four more, the shooting gallery challenge is a little less risky than ringing doorbells.

There are seven shooting galleries on Fortnite’s battle island, finding them is the tough part, hitting the target three times should be easy for most players.

Friday Night Fortnite

This weekend sees Fortnite’s first “Friday Night Fortnite” event on October 19, 2018. You’ll need a squad of four to compete in this challenge running from 7 pm to 11 pm, set to be a regular Friday feature for players. Prizes are points based for this one.

Fortnite Fall Skirmish Week 5

One tournament where there is real money up for grabs, week five of Fortnite’s Fall Skirmish also starts this weekend. There’s a $25,000 bonus prize for the two-player team with the highest elimination total of six regional matches and a $10,000 prize for a Fortnite Royal Flush.

The entire Fall Skirmish event has a total prize pool of $10 million and will conclude at the TwitchCon 2018 event in San Jose, California with a final grand prize of $400,000.

Battle Bus Upgrades

The Fortnite Battle Bus, delivering skydiving players to the island and into battle now moves 25% faster. It’s even quicker to get right into the fray so for serious players, more time honing those Fortnite skills in the hope of heading up the rankings.

Let’s not forget five of Fortnite’s top players have won well over a million so far. Fortnite is serious stuff, so if you’re not playing yet, well, it is the weekend.

Featured image from Epic Games.

October 20, 2018
EU Greenlights Microsoft’s Acquisition of GitHub

The European Union (EU) has given its approval to Microsoft for purchasing the software web-hosting service GitHub for $7.5 billion. The commission has also stated that it firmly believes that GitHub will continue to exist as an open platform.

Should Developers be Worried?

When the acquisition was announced in June 2018 by Satya Nadella, CEO of Microsoft, many developers weren’t happy with a ‘corporate entity’ taking over an open source platform. Some developers mentioned that the takeover was impossible to avoid while others simply deleted their GitHub accounts.

In the official announcement, Nadella wrote that developers are responsible for creating a cloud-based world. Since each industry will be disrupted by these new technologies in the future, developers will increase in numbers.

These builders will require a platform where they are able to share codes and solve problems together. Thus, Microsoft, being one of the 28 million developers on Github, will help the software developing company in achieving their goals.

Nadella also added that Microsoft will support the open source ecosystem. Nat Friedman, corporate Vice President of Microsoft, will become the CEO of GitHub. He concluded the post by stating that the company will work hard to empower developers and create a healthy environment.

GitHub Chose Microsoft Over Google

CNBC reported that insiders revealed that Google and Amazon were both interested in acquiring GitHub. According to sources, GitHub chose Microsoft not only because it outbid Google in the auction but also because GitHub’s founder, Chris Wanstrath, knew Nadella. He also appreciated Nadella’s efforts to support open-source platforms.

According to the press release published on Friday, the EU believes that competition between GitHub and Microsoft, and other software companies would continue regardless of the merger.

The commission also believes that GitHub will remain open-source since Microsoft has no motive to change this feature. The statement also added that Microsoft understands that developers can easily turn to other open-source platforms.

Analysts: Microsoft’s Profits Will Surge Past 11% in 2018

Microsoft will publish the next quarter’s earnings on October 25. Analysts predict that the company will see a profit of 11% this year. Even though their stocks fell by 10% last week, the company was able to bounce back slowly.

If analysts are correct, the share prices could end up at $125. Profits are also expected to increase by 16% in 2019 and 18% in 2021.

Featured image by Pixabay.

October 20, 2018